Economic Production Lot Size Model with Variable Production Rate and Imperfect Quality

Khouja, Moutaz; Mehrez, Abraham

doi:10.2307/2583934

Cited by 31 publications

(47 citation statements)

References 2 publications

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“…Cheng (1991) have derived a closed form expression for the optimal demand to satisfy order quantity and process reliability while the demand exceeds supply and the production process is imperfect. Khouja and Mehrez (1994) have considered the elapsed time until the production process shifts to an 'out-of-control' state to be an exponentially distributed random variable. The results of this model indicate the aspect for both weak and strong relationship between the rate of production and process quality.…”

Section: Introductionmentioning

confidence: 99%

An Economic Production Model with Flexibility

2016

IJSR

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This paper develops a model to determine the optimal reliability and production rate that achieves the biggest total integrated profit for an imperfect production process under allowable shortage. In this system, production facility may shift 'in-control' state to an 'out-control state' at any random time. The basic assumption of the classical EPL model is that 100% of product is of perfect quality. But practically this is not true. More specifically, the paper extends the paper of Sana (S.S.Sana, 2010, an economic production lot size model in an imperfect production system. European Journal of Operational Research 201, 158-170). Here we consider two type of production process in a cycle time. One is 'in-control' state at the starting of the production which provides conforming quality items and second one is 'out-control' state after certain time due to higher production rate and production run time. The proposed model is formulated assuming that a certain percent of total product which described by a function is defective. The imperfect quality items are reworked at a cost to restore its quality to the original one. The total cost function is illustrated by numerical examples and also its sensitivity analysis is carried out.

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Section: Introductionmentioning

confidence: 99%

An Economic Production Model with Flexibility

2016

IJSR

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“…Banerjee and Kim (1995) considered the integrated inventory models in which the retailer and customer coordinate their manufacturing and ordering plan, in order to lesser the common inventory costs. Khouja and Mehrez (1994) considered three coordination systems among the members of the supply chain and showed that several coordination systems could induce to significant decrease in total price. Cardenas-Barron (2007) extended the model of Khouja and Mehrez (1994) by mathematical method, assuming n-stage multi-customer supply chain inventory coordination.…”

Section: Introductionmentioning

confidence: 99%

“…Khouja and Mehrez (1994) considered three coordination systems among the members of the supply chain and showed that several coordination systems could induce to significant decrease in total price. Cardenas-Barron (2007) extended the model of Khouja and Mehrez (1994) by mathematical method, assuming n-stage multi-customer supply chain inventory coordination. Jalbar et al (2008) developed a multi-echelon inventory coordination in which one retailer delivers an item to many customers.…”

Section: Introductionmentioning

confidence: 99%

A production inventory model with exponential demand rate and reverse logistics

Raj¹,

Kaliraman²,

Chandra³

et al. 2014

10.5267/j.ijiec

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The objective of this paper is to develop an integrated production inventory model for reworkable items with exponential demand rate. This is a three-layer supply chain model with perspectives of supplier, producer and retailer. Supplier delivers raw material to the producer and finished goods to the retailer. We consider perfect and imperfect quality products, product reliability and reworking of imperfect items. After screening, defective items reworked at a cost just after the regular manufacturing schedule. At the beginning, the manufacturing system starts produce perfect items, after some time the manufacturing system can undergo into "out-of-control" situation from "in-control" situation, which is controlled by reverse logistic technique. This paper deliberates the effects of business strategies like optimum order size of raw material, exponential demand rate, production rate is demand dependent, idle times and reverse logistics for an integrated marketing system. Mathematica is used to develop the optimal solution of production rate and raw material order for maximum expected average profit. A numerical example and sensitivity analysis is illustrated to validate the model.

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“…Cheng (1989) studied an inventory model for imperfect production process and quality dependent unit production cost. Khouja and Mehrez (1994) addressed the effects of variable production rate and imperfect quality on economic production lot size model. Khouja (1999) studied the economic lot size production (ELSP) with a controllable production rate and imperfect quality.…”

Section: Introductionmentioning

confidence: 99%

Coordination policy for a three echelon supply chain considering imperfect quality items

Singh¹,

Vaish²,

Singh³

2014

10.5267/j.ijiec

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In this study, we develop a three echelon supply chain model for items to determine the optimal reliability and production rate, which achieves the biggest total integrated profit for an imperfect manufacturing process. Here, we have taken a supplier, a manufacturer and a retailer in which supplier supplies raw materials to manufacturer, manufacturer produces perfect and imperfect quality items because practically it happens and manufacturer supplies perfect quality items to the retailers. In production system, production facility may shift from an in-control state to an out-ofcontrol state at any random time. The basic assumption of classical economic manufacturing quantity model is that all manufacturing items are of perfect quality but the assumption is not true in practice. The proposed study is formulated assuming that a certain percent of total product is defective. This percentage also varies with production rate and production run time. The defective items are restored in original quality by reworked at some costs to maintain the quality of products in a competitive market. Finally, numerical example and its graphical representation are given to illustrate the proposed model. Sensitivity analysis is also provided to test feasibility of the model.

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Economic Production Lot Size Model with Variable Production Rate and Imperfect Quality

Cited by 31 publications

References 2 publications

An Economic Production Model with Flexibility

An Economic Production Model with Flexibility

A production inventory model with exponential demand rate and reverse logistics

Coordination policy for a three echelon supply chain considering imperfect quality items

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